OTTAWA – The Federal Liberals have proposed to use the proceeds (expected to be several billion dollars) from the upcoming auction of the 700 MHz and 2500 MHz bands to bring high-speed Internet connectivity (of just 1.5 Mbps) to every single household in Canada within three years.
“A Liberal government will publicly tender contracts for private companies to install broadband capacity for the hundreds of thousands of Canadians in rural, remote or northern areas who do not currently have access,” states the Liberal Party of Canada’s election platform, which was released Sunday morning (April 3). “To make those contracts economical for private investment, we will provide $500 million in support, allowing Canada to achieve basic high-speed Internet access for all Canadian households within three years.”
Later in its platform document, the Liberals add, “Using proceeds from the upcoming spectrum auction slated for 2012, a Liberal government will set a goal of 100% high-speed internet connectivity of at least 1.5 MB/sec for all Canadian communities within three years of being elected. This commitment will increase the availability of affordable line and wireless connectivity, and improve mobile phone coverage in rural areas.”
The Liberal stand on using spectrum auction proceeds is not the only element of what it calls its Digital Canada strategy. Other elements include: closing the digital divide by promoting digital life skills and training for older and low-income Canadians; copyright legislation that balances the need for creators to be compensated and consumers’ right to use the material they’ve paid for; consideration that more Canadian stories online requires the help of the public broadcaster CBC/Radio Canada; and carriers that invest in networks should get a fair return.
The Liberals also believe that an open Internet with neutral traffic management practices is appropriate. “To ensure it fosters the uninhibited exchange that innovation requires, Canada’s Internet environment must remain open. Internet traffic management must remain neutral, and maintain the open sharing of legitimate technologies, ideas and applications. A fair, effective wholesale regime is also essential to allow smaller Internet service providers to lease broadband infrastructure at fair prices,” the Liberals say.
Foreign investment
Foreign ownership of Canadian firms is also an area the Liberal election platform explores. The centrist party doesn’t say whether it’s for or against a greater level of foreign investment in the communications sector, but notes a better system of assessing the pros and cons needs to be established.
This can be done by strengthening the Investment Canada Act to make foreign investment reviews more transparent, including clarification of the “net benefit” test, the importance of Canadian headquarters and management, and articulate when an asset can be considered of particular “strategic” value to Canada.
“Being pro-active is not the same as being protectionist,” states the platform. “Rather, it’s part of a more effective approach to innovation and Canada’s place in the 21st century global economy.”
Digital technologies is one of three sectors a Liberal government would champion. It would encourage innovation through an Innovation and Productivity Tax Credit (IPTC) granting Canadian investors a 15% tax credit for investments in small, early-stage start-ups and the extension of the flow-through shares model popular in the resource sector to start-ups in the three Canadian Champion Sectors (the other two are health and biosciences, and clean resources).
“This tax incentive would allow venture companies with little or no revenue to pass on tax deductions to investors, creating a significant incentive to invest in Canadian entrepreneurs from promising sectors where Canada can become a world leader,” the Liberals say.
Arts and culture
The Liberals say CBC, particularly its French arm, is the defender of Canadian content and therefore deserves some stable funding. “A Liberal government will provide the CBC and Radio-Canada with stable and predictable funding in support of their unique and crucial roles,” reads the platform.
The Canadian Council for the Arts and Promart and Trade Routes programs would also get a boost under a Liberal government.
“Liberal government will significantly increase support for Canadian artists and creators by doubling the annual budget of the Canada Council for the Arts, from $180 million to $360 million over the next four years,” the Liberals say, adding that it “will also restore the Promart and Trade Routes cultural promotion programs, increasing their funding to $25 million.”
